Reference no: EM131740753
Question: During FY 2016, Alpha Company sold 100 units for total sales of $10,000. Manufacturing costs consisted of direct labor $1,500, direct materials $1,400, variable factory overhead $1,000, and fixed factory overhead $500. Alpha Company does not maintain any inventories. Total cost of goods sold was $4,400. Selling expenses were $600 variable and $1,000 fixed. Administrative expenses were $500 variable and $1,000 fixed. Net Income was $2,500. Use this information to determine the following using CVP Analysis: (Round all final answers to nearest dollar or whole unit number.)
1. Breakeven Point in total sales dollars
2. Breakeven Point in total units
3. Breakeven Point in total sales dollars if the fixed factory overhead increased by $1,500
4. Breakeven Point in total units if the fixed factory overhead increased by $1,500
5. Net Income if sales units increased by 35%
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